Correlation Between ATHENE HOLDING and COFACE SA
Can any of the company-specific risk be diversified away by investing in both ATHENE HOLDING and COFACE SA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ATHENE HOLDING and COFACE SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATHENE HOLDING PRFSERC and COFACE SA, you can compare the effects of market volatilities on ATHENE HOLDING and COFACE SA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ATHENE HOLDING with a short position of COFACE SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATHENE HOLDING and COFACE SA.
Diversification Opportunities for ATHENE HOLDING and COFACE SA
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATHENE and COFACE is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HOLDING PRFSERC and COFACE SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFACE SA and ATHENE HOLDING is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ATHENE HOLDING PRFSERC are associated (or correlated) with COFACE SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFACE SA has no effect on the direction of ATHENE HOLDING i.e., ATHENE HOLDING and COFACE SA go up and down completely randomly.
Pair Corralation between ATHENE HOLDING and COFACE SA
Assuming the 90 days trading horizon ATHENE HOLDING PRFSERC is expected to generate 0.37 times more return on investment than COFACE SA. However, ATHENE HOLDING PRFSERC is 2.69 times less risky than COFACE SA. It trades about 0.09 of its potential returns per unit of risk. COFACE SA is currently generating about 0.02 per unit of risk. If you would invest 2,164 in ATHENE HOLDING PRFSERC on September 24, 2024 and sell it today you would earn a total of 216.00 from holding ATHENE HOLDING PRFSERC or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATHENE HOLDING PRFSERC vs. COFACE SA
Performance |
| Timeline |
| ATHENE HOLDING PRFSERC |
| COFACE SA |
ATHENE HOLDING and COFACE SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATHENE HOLDING and COFACE SA
The main advantage of trading using opposite ATHENE HOLDING and COFACE SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATHENE HOLDING position performs unexpectedly, COFACE SA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in COFACE SA will offset losses from the drop in COFACE SA's long position.| ATHENE HOLDING vs. Media and Games | ATHENE HOLDING vs. FUTURE GAMING GRP | ATHENE HOLDING vs. MCEWEN MINING INC | ATHENE HOLDING vs. Harmony Gold Mining |
| COFACE SA vs. Sterling Construction | COFACE SA vs. SENECA FOODS A | COFACE SA vs. National Beverage Corp | COFACE SA vs. Dairy Farm International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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